| hile intellectual capital has become essential for organizational performance, CEO compensation has risen to all-time highs. To understand the growth in CEO compensation, this study examined the relationship between CEO compensation and intellectual capital as a measure of organizational performance. The Value Added Intellectual Coefficient (VAIC(TM)) model was adopted in this study to measure intellectual capital at the organizational and subcomponent levels. CEO compensation and financial data for the VAIC(TM) model were collected from 2009 to 2014 for a random sample of 90 firms listed on the NASDAQ Exchange. All data was obtained from audited financial statements for validity and reliability. This produced 450 observations for the VAIC(TM), its subcomponents, and CEO compensation that were analyzed with a cross-validated multiple linear regression. The results found capital employed efficiency (CEE), a subcomponent of the VAIC(TM), was the sole significant predictor accounting for 4.8% of the variance in CEO compensation or... |
